By: Susan VanEpps
Loudoun entrepreneurs that act quickly can help the community and their business, all while scoring a significant tax credit – just by hiring a veteran in need of employment before January 1, 2013.
Under the Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011, additional categories of veterans now qualify employers for the Work Opportunity Tax Credit (WOTC). This federal business tax credit serves as an incentive to employers to hire individuals who have consistently faced significant barriers to employment. Veterans, particularly younger veterans who served in the military since 2001, traditionally face higher unemployment rates than the general public.
According to the Internal Revenue Service, the business tax credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will also depend on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. There are forms to fill out and quite a few rules and regulations to follow, so it’s best to go to the source to ensure all the requirements for the credit are met.
There are currently over 18,000 veterans in Loudoun County. To speak with the local Department of Veterans Affairs representative about requirements for hiring a veteran, contact the Washington, D.C. regional office at 1-800-827-1000. A related Department of Labor fact sheet and an Internal Revenue Service Q&A are also available online.
